March 06, 2013 11:49
LG Display overtook Samsung Display to rank first in the global LCD market for the first time in seven years.
LG also outpaced Samsung for the first time in the fourth quarter of last year in overall LCD and next-generation OLED sales.
According to DisplaySearch, a global IT market researcher, LG had a 28 percent share in the LCD market last year. Next came Samsung with 25.1 percent.
LG achieved W8.74 trillion (US$1=W1,088) in overall sales in the fourth quarter of last year, ahead of Samsung's W7.75 trillion.
"LG Display has found new customers such as Sony and Panasonic and increased production accordingly," analyst So Hyun-chul of Shinhan Investment Corp. said. "It has gained a foothold for growth by supplying most LCD products for Apple's iPads in the explosively growing tablet PC market."
In contrast, Samsung failed to increase sales dramatically because it is highly dependent on a single customer, affiliate Samsung Electronics.
LG has increased the proportion of high-end product sales over the last two years. An LG executive said, "We increased the sales proportion of premium products from 35 percent in 2011 to 55 percent last year, so revenues grew as a result of higher prices."
Meanwhile, Samsung plans to promote next-generation OLED products instead of LCD panels.
"Because of the recession, it's becoming more important in the display market to produce quite new products with advanced technology than to compete in cutting production costs," said analyst Park Sang-hyun of KTB Investment and Securities. "Who takes the lead will depend on who manages to do that best."
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